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NEW - Direct Loans Frequently Asked Questions (PDF)
Loans
Student loans are a key source of educational financing for law students. When choosing a lender, be sure to fully investigate all terms and conditions to ensure that the lender you select meets your individual needs. (See Loan Program Summary Charts and EdFund's chart of Federal Loan Limits, Interest Rates and Fees.)
Lender Information
The Financial Aid Office compiles information on the lenders used by the current student body on an annual basis. The lenders listed on the Financial Aid Application offer loan products and services specifically for graduate students (i.e. Federal Grad PLUS Loan). However, if you wish to use another lender when applying for financial aid, feel free to do so.
Please note: Some lenders may not be accepting new applications for loans. Additionally, not all lenders are set up to transfer loan data and funds electronically. Students may contact the Financial Aid Office at any time to inquire about lenders and their current procedures or may contact the lender directly.
Lenders
- Access Group
- Bank of America
- Citibank
- Sallie Mae
- U.S. Bank
- All Student Loans Corp.
- Discover
- Ed South
- Key Bank Navy FCU
- Nellie Mae
- Sun Coast FCU
- Wells Fargo
Federal Stafford Loans
(Subsidized and Unsubsidized)
The federal government offers eligible students Federal Stafford Loans through participating banks, credit unions, and savings and loan institutions. Graduate students may apply for up to $20,500 per academic year, of which $8,500 may be subsidized (the Federal government pays the interest while the student is in school and during grace periods and eligible deferment periods) if the student qualifies on the basis of need. The student will be responsible for in-school interest on any unsubsidized portion borrowed. Students may borrow up to a combined aggregate maximum of $138,500 for both undergraduate and graduate loans through this program. The current new borrower, in-school rate is 6.8%.
Interest on a subsidized loan does not begin to accrue until six months after the student ceases at least half-time enrollment, at which time repayment of principal and interest begins. Students can be charged up to a 3% loan origination fee for this loan but several lenders waive this charge. Several weeks lead time should be allowed for processing.
Federal Graduate PLUS Loan (Grad PLUS)
The federal government offers eligible students Federal Graduate PLUS Loans through participating banks, credit unions, and savings and loan institutions. Graduate students may apply for up to the cost of education less any other financial aid per academic year. The interest accrues while the student is in school and during grace periods and eligible deferment periods). There is no aggregate maximum on this loan. The current new borrower, in-school rate is 8.50%.
Students MUST be charged up
to a 3% loan origination fee for this loan at time of disbursement. Several weeks lead time should be allowed for processing.
Your credit report will be pulled and reviewed by your lender when you ask for the Grad PLUS loan.
To qualify, your credit report cannot reflect any of the following adverse items:
- Currently 90 days or more delinquent on repayment of any debt
- Debt discharged in bankruptcy during the past 5 years
- Evidence of a default, foreclosure, tax lien, repossession, wage garnishment, or write-off of a Title IV debt during the past 5 years
Federal Perkins Loans
The Federal Perkins Loan program allows Southwestern to extend loans to students who demonstrate exceptional financial need. The interest rate on these loans is 5% and does not begin to accrue until six to nine months after the recipient ceases to attend at least half-time. Loans range from $1,000 to $8,000 per year, to an aggregate maximum of $60,000, including undergraduate study. The minimum repayment rate on these loans is $40 per month, but may be more in order to meet the 10-year maximum repayment requirement. Repayment commences nine months (six months for students who have outstanding balances on NDSL/Perkins Loans prior to 1987) after the borrower ceases to attend at least half-time.
Private Student Loans
Lenders have several loan programs for students who are unable to finance the entire cost of their education with traditional forms of financial aid. These loans are not guaranteed nor subsidized by the federal or state government. Private loans are not based on need, but other financial aid is taken into consideration when determining maximum amounts for which a student is eligible. Student loans, including those from private lenders, may never exceed total cost of education for an academic year through any combination of financial assistance. To obtain the most complete, current information on terms and conditions, the lenders should be contacted directly.
Credit Scoring
Most private loan lenders use credit scoring (the most widely used method is Fair Isaac, Inc.) as a means to determine the amount of risk they are assuming on a borrower level. Using this risk model, creditors receive a "credit score" for each borrower. That score is then used to determine if the borrower is too risky, and therefore requires either a higher guarantee fee, a co-signer or a denial of credit.
Even though lenders will not release the student's score to them, there are some preemptive steps students can take. Students should review a copy of their credit report for erroneous information; contact any credit card company no longer in use and close the account; and reduce outstanding debt as much as possible. In addition, students should not apply for additional credit, as inquiries hurt the credit score. For assistance, students can visit Fair Isaac, Inc.'s website.
Bar Exam Study Loans
Lenders offer private, non-federal loans for bar study. Students are encouraged to contact their lender of choice for more program details.
Bar Exam Study Loan Information (PDF)
Your credit will be pulled by the lender when you apply for this loan.
Institutional Loans
Southwestern administers several institutional loan programs for its students who find themselves in need of additional assistance. The interest rate for funds borrowed between 7/1/2008 and 6/30/2009 is a 5% (fixed).
William Randolph Hearst Endowed Revolving Loan Fund
This fund was made available by the William Randolph Hearst Foundation to provide loans of up to $5,000 per year to students who meet the need, scholarship, and leadership criteria. The interest rate is a minimum of 5%, or the prevailing rate for externally funded private loans for law students, whichever is higher, the rate to be determined annually and applied to new loans made during that academic year. No interest accrues while the recipient is enrolled at least half-time at Southwestern and during the 9 month grace period. Recipients must be in the top 60% of their class, have need and be enrolled at least half-time.
W.M. Keck Foundation Endowed Revolving Student Loan Fund
The W.M. Keck Foundation provided a grant for the establishment of a revolving loan fund to assist continuing law students at Southwestern. The program provides loans of up to $5,000 per year. The interest rate is a minimum of 5%, or the prevailing rate for externally funded private loans for law students, whichever is higher, the rate to be determined annually and applied to new loans made during that academic year. No interest accrues while the recipient is enrolled at least half-time at Southwestern and during the 9 month grace period. Recipients must be in the top 60% of their class, have need and be enrolled at least half-time.
Victor L. Mindlin Memorial Endowed Revolving Loan Fund
Financial aid from this fund, established in memory of Mr. Victor L. Mindlin '32, is available to eligible students in the form of loans. The interest rate is a minimum of 5%, or the prevailing rate for
externally funded private loans for law students, whichever is higher,
the rate to be determined annually and applied to new loans made during
that academic year. No interest accrues while the recipient is enrolled
at least half-time at Southwestern and during the 9 month grace period.
Recipients must be in the top 60% of their class, have need and be
enrolled at least half-time.
Ignatius F. Parker Revolving Loan Fund
This revolving loan fund was established in memory of the late Ignatius F. Parker, Dean Emeritus of Southwestern Law School. The program provides loans of up to $5,000 per year ($7,500 for SCALE students). The interest rate is a minimum of 5%, or the prevailing rate for externally funded private loans for law students, whichever is higher, the rate to be determined annually and applied to new loans made during that academic year. No interest accrues while the recipient is enrolled at least half-time at Southwestern and during the 9 month grace period. Recipients must be in the top 60% of their class, have need and be enrolled at least half-time.
Irving D. and Florence Rosenberg Endowed Revolving Loan Fund
This fund was established by Mrs. Florence Rosenberg and the estate of Irving D. Rosenberg to provide loans of up to $5,000 per year to students who meet the need ans scholarship criteria. The interest rate is a minimum of 5%, or the prevailing rate for externally funded private loans for law students, whichever is higher, the rate to be determined annually and applied to new loans made during that academic year. No interest accrues while the recipient is enrolled at least half-time at Southwestern and during the 9 month grace period. Recipients must be in the top 60% of their class, have need and be enrolled at least half-time.
Themis Society Revolving Loan Fund
The Southwestern Themis Society created a revolving loan fund to assist continuing students who are in their last year of law school. The program provides loans of up to $5,000 per year. The interest rate is a minimum of 5%, or the prevailing rate for externally funded private loans for law students, whichever is higher, the rate to be determined annually and applied to new loans made during that academic year. No interest accrues while the recipient is enrolled at least half-time at Southwestern and during the 9 month grace period. Recipients must be in the top 60% of their class, have need and be enrolled at least half-time.
Short-Term Loan Advance
Southwestern offers short-term, interest-free loans to students who demonstrate emergency need. These loans are targeted for emergencies, not regular expected bills (such as rent), which may come up from time to time. These loans may not be used for tuition payments. Students may borrow only one such loan during any one semester, and the loan must be repaid during that semester.
Bing Crosby Emergency Loan Fund
This fund was established by the trustees of the Bing Crosby Youth Fund to provide emergency loans to enrolled students.
Marilyn Garland Emergency Loan Fund
Established by members of the Southwestern community in memory of Mrs. Marilyn Garland (deceased wife of Professor Norman Garland) who died in 1982, this fund provides emergency loans of up to $1,000.
Note: A student may not receive scholarship funds from Southwestern sources in excess of current tuition.
Public Interest Service Award
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